Cancellation of Northlander train service announced

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ONTC president Paul Goulet has called a news conference for 1:30 p.m.
TORONTO-Ontario has chosen to take a new approach to regional transportation in northeastern Ontario by winding down the Ontario Northland Transportation Commission (ONTC).
This decision will allow the government to protect investments in northerners' health and education systems while balancing the budget by 2017-18.
Since 2003, the government has worked hard to make the ONTC viable by increasing funding by 274 per cent. However, demand for its services has stagnated. Also, the current subsidy on the Northlander train is $400 per passenger, and no longer affordable.

Government funding has increased from $28 million annually in 2003-04 to $103 million this year.

Ridership has remained stagnant at about 320,000 rides a year.

Sales revenues have declined from $140 million in 2005 to just over $100 million this year.

Private buses serve most of the same communities.

A transition board has been appointed to work with current Chairman Ted Hargreaves to begin the divestment of the commission. The board has been given a mandate to:

Begin the process of cancelling the Northlander train service that runs between Toronto and Cochrane - to be replaced with enhanced bus service

Tender bus services for other operators to service existing bus routes

Consolidate the ferry service between Moosonee and Moose Factory with other provincial ferry services.

There will be no immediate changes for ONTC services or employees.
QUOTES
"No government in recent memory has worked harder than ours to make the ONTC viable. We've made significant investments in the ONTC since 2003, but the organization is not on a sustainable financial path. We have a responsibility to find a new solution that both protects essential passenger services and ensures that northerners are getting full value for taxpayer money. Our priority is to invest in areas that matter most to northerners, such as health care, education, northern highways and the Northern Ontario Heritage Fund. "
– Rick Bartolucci
Minister of Northern Development and Mines
"Today we are provided with an opportunity to build a new transportation system for a new era. I am pleased to participate in a process that will result in a sustainable solution that has such great potential for new opportunities for northeastern Ontario."
– Ted Hargreaves
Chairman of the Board for ONTC
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